NBB's profit surges 7.4pc to $76.4 million

Manama, July 22, 2014

National Bank of Bahrain (NBB) has reported an increase of 7.4 per cent in net profit at BD28.74 million ($76.44 million) for the six months ended June 30 when compared with BD26.77 million for the corresponding period last year.

For the second quarter, the bank's net profit was BD12.12 million as against BD11.94 million for the same period last year, said a report in the Gulf Daily News (GDN), our sister publication.

The results were approved by the board at a meeting yesterday led by deputy chairman Dr Essam Fakhro, who expressed his satisfaction with the results and consistent progress achieved over the years.

The net interest income for the first half saw an increase of 7.6 per cent to BD30.51 million from BD28.36 million for the corresponding period of last year.

The improvement is attributable to the growth in earning assets and better liability management resulting in reduction of funding costs.

Other income for the six months increased by 10 per cent to BD15.63 million when compared with BD14.21 million for the corresponding previous period.

The growth was driven by increase in core banking activities, higher dividend on investments and increased contribution from investment in associates.

NBB said operating expenses continue to be proactively managed with the cost to income ratio showing a marginal improvement from 31.85 per cent last year to 31.77 per cent this year.

The bank said it took impairment provision on loans of BD2.17 million during the year which further strengthened the overall financial position.

Core business continues to show steady growth with total earning assets (comprising treasury bills, bank placements, securities and investment in associates), rising 9.1 per cent to BD2,718.79 million as at June 30 when compared with BD2,491.03 million as at June 30 last year.

Similarly, customer deposits saw an increase of 4.5 per cent to BD2,177.56 million from BD2,083.73 million.

Earnings per share for the first six months this year improved to 30.5 fils from 28.5 fils for the corresponding period last year.

"The results are a confirmation of the bank's ability to deliver strong results backed by a sound financial position," NBB chief executive and director Abdul Razak Al Qassim said.

"The operating results are encouraging with both interest and non-interest income streams showing steady growth.

"With a positive outlook for the domestic economy, we are well placed to further improve our position given the strong domestic franchise and capital base," he added. - TradeArabia News Service